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Thread: Ministry of Textiles - Textile Export Quota Policy 2000-2004

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    Thumbs up Ministry of Textiles - Textile Export Quota Policy 2000-2004

    Ministry of Textiles

    Textile Export Quota Policy 2000-2004

    TO BE PUBLISHED IN PART-I, SECTION-I, OF THE GAZETTE OF INDIA EXTRAORDINARY, DATED
    GOVERNMENT OF INDIA

    MINISTRY OF TEXTILES

    New Delhi,
    dated 12th November, 99

    NOTIFICATION No. 1/128/99 Exports-I


    Subject:- Garments and Knitwears export entitlement (quota) policy (2000-2004) - in respect of countries where such exports are covered by restraints under the provisions of the Agreement on Textiles and Clothing

    1. INTRODUCTION:

    Pursuant to provisions contained in Item No.8 of Appendix I, schedule 2 of ITC (HS) classifications of Export and Import published under the Export and Import Policy (1997-2002) in respect of export of readymade garments and knitwear to the USA, Canada and the European Union, the Policy for Allotment of Entitlements (hereinafter referred to as the Allotment Policy) for the years 2000 to 2004 shall be as hereinafter detailed.


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    Thumbs up Textile Export Quota Policy 2000-2004 - ADMINISTRATION

    Textile Export Quota Policy 2000-2004

    2. ADMINISTRATION:

    i. Unless otherwise directed, the Director General, Apparel Export Promotion Council, New Delhi (DG, AEPC) shall allocate export entitlements. The DG, AEPC shall also do the necessary certification for exports of all readymade garments and knitwear covered in this Notification. DG, AEPC shall also function as ‘Quota Administering Authority’ as mentioned elsewhere in this Notification.

    ii. For the purpose of this Notification, the DG, AEPC shall mean and include such other officials of the AEPC to whom the DG, AEPC expressly or otherwise delegates a part or whole of the necessary functions and responsibilities.

    iii. The DG, AEPC, notwithstanding any delegations effected by him, shall be accountable to the Ministry of Textiles for implementation of the Allotment Policy.

    iv. The Ministry of Textiles shall be the final authority regarding interpretation of any of the provisions of this notification. The Ministry of Textiles may also issue such guidelines as it deems fit from time to time regarding agencies of administration, their functions and responsibilities and may reallocate a part or whole of the functions and responsibilities to such authorities as it deems fit.

    v. Export entitlements will be allotted only to exporters registered with the competent registering authorities as per the Export-Import Policy prevailing from time to time


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    Thumbs up Textile Export Quota Policy 2000-2004 - BASE YEAR

    Textile Export Quota Policy 2000-2004

    1. BASE YEAR

    The phrase "Base Year" for an allotment year, wherever appearing in this Notification, shall mean the calendar year preceding the year immediately before that allotment year. For example, for the allotment year 2000, the base year shall be 1998.

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    Thumbs up Textile Export Quota Policy 2000-2004 - SYSTEMS OF ALLOTMENT

    Textile Export Quota Policy 2000-2004

    2. SYSTEMS OF ALLOTMENT

    i. Quantities for export in each allotment year shall be allocated under the following systems at rates indicated against each of them:

    System of Allotment Percentage of Annual Level

    Past Performance Entitlement (PPE) System 70%

    (Out of which HVE) (5%)

    New Investors Entitlement (NIE) System 15%

    Non Quota Entitlement (NQE) System 5%

    First Come First Served (FCFS) Entitlement System 10%

    ii. Quantities that become available from time to time on account of surrenders, flexibilities or otherwise shall also be allocated under the First Come First Served (FCFS) System.

    iii. The Ministry of Textiles reserves the right to allocate entitlements in variation with the above, in case it is considered so desirable, in view of changes in the demand pattern and / or other relevant considerations. The Ministry may also reserve quantities for knitwear, woollen products, children’s wear or any other Country/Category. Such reserved quantities will operate in the FCFS system for the products for which they have been reserved, upto 30 September and unallocated balance from the reserved quantities as on 1 October will be made available for applications in the FCFS system, without any reservations for such Countries/Categories.

    Last edited by ca_news; 13-05-2011 at 12:46 PM.

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    Thumbs up Textile Export Quota Policy 2000-2004 - PAST PERFORMANCE ENTITLEMENT (PPE) SYSTEM INCLUDING THE HIGH VALUE ENTITLEMENT (HVE) SYSTEM

    Textile Export Quota Policy 2000-2004

    1. PAST PERFORMANCE ENTITLEMENT (PPE) SYSTEM INCLUDING THE HIGH VALUE ENTITLEMENT (HVE) SYSTEM:

    Application and Computation

    i. The quantities earmarked for allotment in this system shall be made available on 1st January and for this purpose, applications shall be invited by the Quota Administering Authority during the previous year.

    ii. The DG, AEPC will compute PPE.

    iii. Available levels will be allotted pro-rata on the value of exports during the base year by the applicants in each country-category. Allotments, however, will be restricted to the average annual export performance of India in the country-category during the base year.

    Computation - H.V.E.

    (iv) The average unit value realised by all exporters who have applied for PP Entitlement in a particular country-category during the base year would be worked out and exporters who have realised a higher unit value than the average unit value will be allotted additional quantities from the 5% reserved pool (HVE) on the basis of the difference between the unit value realised by an exporter and the average unit value realised in a country-category multiplied by the quantity exported by individual exporters in that country-category. The HVE of the individual exporters will be added to their PPE and will be subject to all the conditions applicable to PPE.

    Allotment, Utilisation and Transferability

    (v) The allotment will be in two parts, each consisting of 50% of the allotment. The first part will be valid from the date of allotment till the 31st of May and second part will be valid till the 30th of September.

    i. In the case of allotment valid till the 31st of May, transfers may be allowed till the last date, but the original quota holder or the transferee shall get the certification/endorsement of shipment in respect of the entitlement by the 31st of May. Such certification/endorsement shall be valid for shipment upto the 20th of June of the quota year. Unutilised quotas (non-certified or non-shipped) shall lapse.

    ii. In case of allotment valid till the 30th of September, transfers may be allowed till 20th September. The original quota holder or transferee may get an extension thereof till the 31st of December on payment of BG/EMD at the rates given below, subject to the condition that the extension sought is for a specific buyer. One time change of buyer can be allowed by DG, AEPC without changing other conditions applicable.

    Product Group EMD/BG Amount

    Socks/Gloves in USA Rs.2/- per dozen pair

    Underwear in Canada Rs.5/- per piece

    Group-A in Canada Rs.12/- per Sq. Mtr.

    Group-II in USA Rs.12/- per SME

    Categories 4,5 & 24 in EU Rs.12/- per piece

    Others Rs.20/- per piece

    iii. The applications for such extension should be submitted, complete in all respects, before the expiry of the initial validity of the entitlement or within a grace period of three working days.

    iv. The transferred PPE will be known as PPT.
    v. Shipments against PPT shall be counted as exports by the transferee.
    vi. Transfer of PPT is not allowed.

    Electronic Transfer System (ETS)

    vii. PPE transfers will be regulated by the Director General, Apparel Export Promotion Council through an Electronic Transfer Scheme with the help of an on-line computer network in which the Offers of intending transferers will be displayed in the Regional Offices of AEPC, including the quantity and Offer prices and the intending transferees will request for transfers on the basis of displayed offers. The offers and requests would be received during the working hours to be prescribed by DG, AEPC and all such offers and requests so received will be processed together. The requests will be made only against the available Offers. However, in case there is no offer on display for a particular country / category, there will be no restrictions on the quantities to be requested and the request price to be indicated.viii. DG, AEPC may take such steps as deemed necessary for facilitating the smooth and effective implementation of ETS after giving due notice to trade and after informing the Ministry of Textiles.

    Last edited by ca_news; 13-05-2011 at 01:05 PM.

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    Thumbs up Textile Export Quota Policy 2000-2004 - NEW INVESTORS ENTITLEMENT (NIE)

    Textile Export Quota Policy 2000-2004


    6. NEW INVESTORS ENTITLEMENT (NIE)

    Applications and Computation

    i. Allotments under the NIE system would be made only to exporters registered, as manufacturer-exporters and who have invested a minimum amount of Rs.50 lakhs in new machinery either in an existing unit or in a new unit. Such machinery shall meet the eligibility criterion of the Technological Upgradation Fund Scheme currently in force.

    ii. Allotments under this system shall be only for the export of goods manufactured in the modernised and upgraded production unit.

    iii. The allottees shall also submit an affidavit at the time of certification of shipments that the goods being exported have been manufactured in their production units so modernised/upgraded.

    iv. The base period for NIE will be any consecutive period of 12 months starting from the 1st January of the base year and ending with 30th June of the previous year. Thus, for the quota year 2001, any 12 constitute months from out of the 18 months period from 1.1.1999 to 30.6.2000 will constitute the base period.

    v. Applications for NIE will be received upto 30th September of the previous year by the Quota Administering Authority. An application under this system shall be accompanied by a demand draft of Rs. 500/- drawn in favour of the Quota Administering Authority and payable at New Delhi. The other terms and conditions of the application will be determined by the Textile Commissioner in consultation with the Quota Administering Authority and after seeking the prior approval of the Ministry of Textiles.

    vi. Available quantities under the NIE will be distributed by the Quota Administering Authority on the basis of the production capacity of eligible applicants.

    vii. Allocation to individual applicants will be distributed pro-rata among all eligible applicants on the basis of eligible investment.

    viii. During the year 2000, NIE allocation would meet the committed liabilities under NIE pertaining to the previous years and if the liabilities are more, these would be met on a pro-rata basis but would not be carried over. The eligible persons would be required to rank their options from the available categories.

    Allotment, Utilisation and Transferability

    ix. NIE shall be allocated in two parts, each consisting of 50% of the allotment. The first part will be valid from the date of allotment till the 31st of May and second part will be valid till the 30th of September.

    x. In case of NIE valid till 31st May, the quota holders will get the certification of shipment in respect of the entitlement by 31st May. The certification will be valid for shipment upto 20th June of the quota year. Unutilised quotas (non-certified or non-shipped) shall lapse.

    xi. In case of NIE valid till 30th September, the quota holders can get the extension till 31st December on payment of BG/EMD at the rates mentioned in 5(vii), subject to the condition that the extension sought is for a specific buyer.

    xii. The applications for such extension should be submitted, complete in all respects, before the expiry of the initial validity of the entitlement or within a grace period of three working days.

    xiii. NIE shall NOT be transferable.


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    Thumbs up Textile Export Quota Policy 2000-2004 - NON QUOTA EXPORTERS’ ENTITLEMENT (NQE) SYSTEM

    Textile Export Quota Policy 2000-2004


    7. NON QUOTA EXPORTERS’ ENTITLEMENT (NQE) SYSTEM

    Application and Computation

    i. Exporters of garments to non-quota countries and non-quota garments to quota countries shall be eligible for allotment under this system provided the payment is received in free currency, and the exporter has a minimum export performance of Rs. 20 lacs during the base year. Exports of garments to Russia will, however, not be taken into account for NQE allotments.

    ii. The quantities earmarked for allotment in this system shall be made available on 1st January and for this purpose, applications shall be invited by the Quota Administering Authority during the previous year.

    iii. The ‘Quota Administering Authority’ will compute NQE.

    iv. Entitlements under this system will be calculated and allotted by the Quota Administering Authority on the basis of value of admissible exports during the base year. The exports of quota garments, which are covered under this Allotment Policy, to non-quota countries will, however, be given double weightage for the purpose of determining entitlements. The levels available will be distributed pro-rata on the basis of the value of exports of individual applicants.

    v. An exporter shall be permitted a choice of ten country-category combinations for allotment.

    Allotment, Utilisation and Transferability

    vi. All conditions applicable to PPE shall also be applicable to NQE, mutatis-mutandis.

    vii. NQE is transferable (such transferred entitlements hereinafter referred to as NQT) and the conditions of transfer will be the same as in the case of PPE.

    viii. All conditions applicable to PPT shall also be applicable to NQT, mutatis-mutandis.


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    Thumbs up Textile Export Quota Policy 2000-2004 - FIRST COME FIRST SERVED (FCFS) SYSTEM

    Textile Export Quota Policy 2000-2004


    8. FIRST COME FIRST SERVED (FCFS) SYSTEM:

    Release Schedule

    i. Entitlement under the FCFS System shall be opened twice in the year. 50% of the entitlement under FCFS will be released on the 10th of January and the other 50% on the 10th of April.

    ii. In addition to the quantities under this system, those that become available by way of surrenders, flexibilities or otherwise, if any, will be released on 10th April, 10th July and 10th November. While considering any such releases, inter-alia, availability of quantities in different categories will also be taken into account. The quantities to be released on these dates along with the country categories and segments where the releases are made, will be announced by the Quota Administering Authority sufficiently in advance before the schedules release.

    iii. The Ministry of Textiles may decide to release quantities in FCFS system in any dates other than the dates stipulated in (ii) above, as may be found necessary. On receipt of such a decision, the Quota Administering Authority will release such quantities in FCFS system after giving adequate notice to the trade.

    Applications

    iv. Quantities shall be allocated against applications and on a day when available quantities are oversubscribed, eligibility shall be decided on the basis of unit value realisation among the applications received on that day.

    Validity of allotments

    v. Allotments will be valid for 75 days from the date of such allotment and no extension will be granted.

    System of allotment

    vi. Allotments under the FCFS system would be subject to EMD/BG @ 5% of FOB value of the quantity involved.

    vii. The Textile Commissioner may fix the maximum quantity that can be applied for by an applicant for each country-category under this system per day in consultation with the Quota Administering Authority.

    Transferability

    viii. FCFS allotments shall NOT be transferable.


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    Thumbs up Textile Export Quota Policy 2000-2004 - HANDLOOM GARMENTS

    Textile Export Quota Policy 2000-2004

    9. HANDLOOM GARMENTS:

    Special quantities reserved for handloom garments for certain countries would be allotted under the FCFS system.

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    Thumbs up Textile Export Quota Policy 2000-2004 - VALIDITY OF CERTIFICATION

    Textile Export Quota Policy 2000-2004


    10. VALIDITY OF CERTIFICATION

    i. Validity of certification on shipping bills in respect of FCFS allotments would be 75 days from the date of allotment unless otherwise specified.

    ii. Validity of PPE/NIE/PPT/NQT will be 75 days from the date of endorsement of the shipping bill or till the expiry of the entitlement certificate, whichever is earlier.

    iii. Notwithstanding anything contained in para 8(v) above, the Textile Commissioner may grant extension of validity period upto three working days in individual cases if he is satisfied that the exporter concerned could not export within the period due to circumstances beyond his control.


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